Chapter 6 Solutions

Chapter 6 Solutions - 1Chapter 6 Liquidity of Short-term...

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Unformatted text preview: 1Chapter 6 Liquidity of Short-term Assets: Related Debt-Paying Ability TO THE NET 1. a. 1. 3531 Construction Machinery & Equipment 2. Item 1. Business Founded in 1969, JLG, Inc is the worlds leading producer of access equipment based on gross revenues. 3. Current ratio July 31 2006 2005 Total current assets (a) $1,034,200,000 $869,300,000 Total current liabilities (b) $426,800,000 $380,100,000 Current ratio (a) (b) 2.42 2.29 b. 1. 5411 Retail Grocery Stores 2. Item 1. Business The Kroger Co. was founded in 1883 and incorporated in 1902. 3. Current ratio February 3, January 28, 2007 2006 Total current assets (a) $6,755,000,000 $6,466,000,000 Total current liabilities (b) $7,581,000,000 $6,715,000,000 Current ratio (a) (b) .89 .96 c. JLG Industries has a material amount in accounts receivable and a slower moving inventory. 2. a. 5411 Retail Grocery Stores b. Item 1. Business The Kroger Co. was founded in 1883 and incorporated in 1902. 125 c. Inventory February 3, 2007 $5,059,000,00 (450,000,000) LIFO Credit $4,609,000,000 Net Inventory d. Replacement Cost $5,059,000,000 e. Inventories are stated at the lower of cost (principally on a last-in, first-out LIFO basis) or market. 3. a. Item 1. Description of the Business Dynatronics was organized as a Utah corporation on April 29, 1983. The principal business of the company is the design, manufacture, marketing and distribution of physical medicine products and aesthetic products. b. Trade Accounts Receivable $3,022,991, net c. Gross receivable $3,022,991 244,238 $3,267,229 d. Finished goods inventories are stated at the lower of standard cost, which approximates actual cost (first-in, first-out), or market. Raw materials are stated at the lower of cost (first-in, first-out), or market. 4. a. SIC 2711 Newspapers: Publishing or Publishing & Printing b. Item 1. Business Tribune Company is a media and entertainment company. Through its subsidiaries, the Company is engaged in newspaper publishing, television and radio broadcasting and entertainment. c. Net receivable 12-31-06 $765,871,000 d. Gross receivable 12-31-06 $765,871,000 33,771,000 $799,642,000 e. Low amount in inventories because Tribune Company is a newspaper company. 126 f. 1. 12-31-06 Current assets 1,377,430,000 Current liabilities 2,546,714,000 Working capital (1,169,284,000) 2. Current ratio 1,377,430,000 2,546,714,000 = .54 g. Broadcast Rights Some broadcast rights are listed under other assets because they are long-term. Contracts payable for broadcast rights is listed under current liabilities. Contracts payable for broadcast rights is listed under other non-current liabilities. 5. a. SIC 3571 Electronic Computers b. Item 1. Business Dell Inc., with fiscal 2006 net revenue of $55.9 billion, is a premier provider of products and services, worldwide that enable customers to build their information technology and internet infrastructures....
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Chapter 6 Solutions - 1Chapter 6 Liquidity of Short-term...

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